BC Hydro 2017 Carbon Neutral Action Report...This Carbon Neutral Action Report for the period...

BC Hydro 2017 Carbon Neutral Action Report

May 2018

BC Hydro 2017 Carbon Neutral Action Report 1

OverviewBC Hydro’s mission is to safely provide our customers with reliable, affordable and clean electricity throughout

British Columbia. We are one of the largest energy suppliers in Canada, generating and delivering electricity to

95% of the population of British Columbia. We operate an integrated system of generation, transmission and

distribution infrastructure to deliver electricity to our four million customers. In 2017, 98.4% of BC Hydro’s

electricity generated in B.C. came from clean and renewable sources. The independent power sector with more

than 120 projects across the province including biomass, hydro, wind and solar were an important contributor.

As an organization, we recognize that we have an impact on the lives of the people in B.C. and with that role

comes a responsibility to maintain the trust and respect of our customers and stakeholders. BC Hydro has

consistently had some of the lowest greenhouse gas emissions in the North American electricity industry and we

have developed a legacy of stewardship by embedding environmental considerations in our business. We are

building on our strong conservation programs, which help our customers reduce their greenhouse gas emissions.

We continue to help our customers make smart energy choices through our conservation and energy

management programs and through tools like smart meters, which provide customers with detailed information

about their electricity use. And we seek to provide leadership in advancing climate action strategies including fuel

switching and electrification initiatives, low carbon fuel transportation initiatives and programs to increase building

energy efficiency.

This report outlines BC Hydro’s carbon neutral activities resulting from the operations of our buildings and fleet

and our use of paper. It also identifies our ongoing efforts to reduce carbon emissions, our continued work to

understand climate change and its effects on our business and the communities we serve, our support for energy

conservation in the public sector, and our new and upgraded energy projects which emphasize clean, renewable,

and environmentally mitigated generation.

This Carbon Neutral Action Report for the period January 1, 2017 to December 31, 2017 summarizes our

emissions profile, the total offsets to reach net-zero emissions, the actions we have taken in 2017 to reduce our

greenhouse gas emissions and our plans to continue reducing emissions in 2018 and beyond.

Cover photograph–Seton Lake reservoir.


32%

2017 Greenhouse gas emissionsIn 2017, BC Hydro emitted 31,099 tonnes of carbon dioxide equivalent (CO2e) from emission sources included

in the Carbon Neutral Government Regulation. This is a 4% increase from 2016. In 2017, 68% of our

emissions came from our vehicle fleet, 32% from buildings (which includes energy use for heating, cooling,

lighting and IT equipment), and less than 1% from paper use. Building emissions were the source of the

observed increase, and increased use of the Site C Clean Energy Project worker accommodations were

among contributors. This increase should be balanced against the project’s operating value as a source of

clean, renewable and cost-effective electricity for more than 100 years, producing the lowest levels of

life-cycle greenhouse gas emissions per GWh compared to alternative sources. 2017 fleet emissions

decreased by 3% compared with 2016, and paper use emissions showed a similar 11% reduction from 2016.

As noted in the regulation, some emissions must be reported but do not require offsets. For BC Hydro,

emissions exempt from offsets are a result of the renewable fuel content in purchased diesel, B5 biodiesel,

gasoline and light fuel oil and equalled 740 tonnes CO2e in 2017. Emissions requiring offsets totalled 30,359

tonnes CO2e for 2017.

Note:

2017 Greenhouse Gas Emissions do not include emissions from stationary combustion in crew

quarters at remote diesel generating stations, emissions from mobile combustion from boats

snowmobiles or all-terrain vehicles, and fugitive emissions from cooling of buildings or vehicles.

These sources are estimated to emit less than 1% of the BC Hydro total carbon neutral emissions.

Efforts to collect or estimate emissions from these sources would be disproportionately onerous. For

these reasons, the emissions were deemed to be out-of-scope and are not included in BC Hydro’s

Greenhouse Gas emissions profile or offset purchase, in accordance with the 2016 B.C. Best

Practices Methodology for Quantifying Greenhouse Gas Emissions.

BC Hydro greenhouse gas emissions by source for the 2017 calendar year (t CO2e*)

Total emissions: 31,099 t CO2e

Total offsets required: 30,359 t CO2e

Emissions which do not require offsets: 740 t CO2e**

68%

<1%

* Tonnes of carbon dioxide equivalent (t CO2e) is a standard unit of measure in which all types of greenhouse gases are expressed based on

their global warming potential relative to carbon dioxide. Due to rounding, numbers may not add up precisely to the totals provided.

** Under the Carbon Neutral Government Regulation of the Greenhouse Gas Reduction Targets Act, all emissions from the sources listed must

be reported. As outlined in the regulation however, some emissions do not require offsets.

Mobile fuel combustion

(fleet and other mobile equipment)

Stationary fuel combustion (building

heating and generators) and electricity

Supplies (paper)


Carbon neutral actions taken to reduce emissions

BuildingsBC Hydro owns or leases 200 buildings in more than 80 municipalities across British Columbia, covering more

than 340,000 square metres of floor space. To achieve lasting energy performance, we incorporate energy

savings opportunities and sustainable design aspects in our capital construction and renovation plans, and

life-cycle costing in our project decision-making.

BUILDING DEVELOPMENT (NEW BUILDINGS AND MAJOR RENOVATIONS)

We design and construct new buildings to meet aggressive energy intensity targets. Our project designs

incorporate innovative technologies to reduce energy use and control greenhouse gas emissions in new

construction, including air source heating pumps, heat recovery chillers and building automation systems. In 2017,

we completed construction of a new district office building in Vernon, while offices in Victoria and Whistler are

currently under construction, and several other offices were in early design stages.

BUILDING IMPROVEMENTS

We consider energy efficiency opportunities as part of the project scope for building improvements and

upgrades. In 2017, we completed retrofits of 13 buildings. Our interior space renovations are designed to reduce

water and energy use by up to 30% through controls, lighting, air flow efficiency and other improvements. In

2017, we delivered the following projects with energy efficiency benefits:

○ Interior renovations and heating, ventilation and air conditioning upgrades in Cache Creek, Westbank, Duncan

and Courtenay district offices;

○ Targeted upgrades by floor at our Edmonds campus;

○ Roof upgrades at the Courtenay, Quesnel, and New Hazelton district offices and the non-integrated area

office in Surrey;

○ Building envelope upgrades at our Terrace and Abbotsford district offices; and

○ Lighting upgrades to LED lamps at our Surrey and Dunsmuir campuses.

Office renovation at Edmonds campus.

Vernon District Office entrance.


Clark electric forklift.GMC Volt electric vehicle.

Vehicle fleetAt the end of 2017, BC Hydro had a vehicle fleet of more than 2,800 vehicles to enable the supply of electricity to communities around the province. We are improving fleet

fuel efficiency by regularly replacing vehicles with newer, more efficient models and performing regular maintenance on all of our vehicles. During 2017, our operational fleet

increased by 250 vehicles, but even with this growth, our emissions reduced by 3% from the previous year.

When available and compatible with work requirements, hybrid and electric vehicles are incorporated into our vehicle fleet as part of the regular vehicle replacement

process. At the end of fiscal year 2018, our fleet included seven electric vehicles and 203 hybrid vehicles. We also operated a fleet of 30 mobile off-road electric equipment,

including man lifts, forklifts, stock carriers, sweepers and skid steers.

BC Hydro is exploring the potential impact of electric vehicles on the electric grid as well as ways to remove barriers to their adoption in B.C. Since 2012, BC Hydro has

deployed more than 50 Direct Currrent Fast Charger stations across the province, designed to make intercity electric vehicle travel practical, and is continuing to work with

partners on the charge station infrastructure to support the growth of clean transportation in B.C.

In addition, our subsidiary Powertech designs and constructs fuelling stations for hydrogen fuel cell vehicles, tests high-pressure hydrogen components, provides fuelling

protocols, and operates a fast-fill hydrogen fuelling station at their headquarters in Surrey.


PaperSince 2010, we have reduced our office paper use by 36%. To keep our paper use low, all network printers and

photocopiers are set to double-sided printing by default. We preferentially order recycled stock paper and in

2017, 81% of all paper used at BC Hydro was 100% recycled.

BC Hydro has implemented a process to scan invoices and other support documents for expense claims, so that

claims can be submitted electronically. Further software applications are being explored that could eliminate

paper claim submissions entirely in the next fiscal year. We are also exploring other paperless processes that use

electronic platforms to provide field instructions and for data collection and record maintenance.

We continue to promote paperless billing to our customers and more than 50% have now chosen this option. We

now have the highest adoption rate for paperless billing among surveyed Canadian Electricity Association utilities.

In fiscal year 2018, about 7.5 million electronic invoices were delivered to customers, which translate into avoiding

the use of more than 15 million sheets of paper. Paperless billing allows electronic notification of a customer’s bill

details, including amount, due date and electricity usage.Service addressJOHN DOE1234 ANYNAME STANYTOWN BC V6B 5A1

Account number55555 4444 333

Invoice number110010157970

Billing dateJan 12, 2018

Page2 of 2

Meter reading information

Energy

Meter number 8877777

Starting Nov 10, 2017............................... 29514Ending Jan 10, 2018.................................30981Difference................................................ 1467

1,467 kWh used over 62 days

Step 1 Step 2

You're charged the Step 1 rate for electricity up to acertain threshold in each billing period, and a higherStep 2 rate for all electricity use beyond thatthreshold. This billing period you reached the higherStep 2 rate. You were 91 kWh above your Step 1threshold of 1,376 kWh this billing period.

Your next meter reading is on or about Mar 12,2018.

Go paperlessGet access to your account online.To get started, visit bchydro.com/gopaperless.

Have a question?Visit bchydro.com/gethelpCall us at 1 800 BCHYDRO (1 800 224 9376).

Maintaining your accountIf we receive your payment after the due date, youmay be charged a late payment fee. To learn moreabout your account with BC Hydro, visitbchydro.com/customerservicerules.

PrivacyProtecting your personal information is an obligationwe take seriously. For more information, visitbchydro.com/privacy.

Bill detailsNov 10, 2017 to Jan 10, 2018

PREVIOUS BILLING PERIODPrevious bill.................................................................... $99.08*Payment received Dec 8, 2017......................................... -$99.08*

BALANCE FORWARD $0.00

ELECTRICITY CHARGES

Based on Residential Conservation Rate 1101Nov 10, 2017 to Jan 10, 2018 (1,467 kWh used)

Basic Charge 62 days @ $0.18990 /day........................................$11.77*

ENERGY CHARGESStep 1: 1,376 kWh @ $0.08580 /kWh..................................... $118.06*Step 2: 91 kWh @ $0.12870 /kWh............................................ $11.71*

Rate rider 5%.................................................................................... $7.08*Regional transit levy: 62 days @ $0.06240 /day................................ $3.87*

TAXES ON ELECTRICITY CHARGES* GST 5% (GST Registration #R121454151)............................... $7.62*

ELECTRICITY CHARGES SUBTOTAL $160.11

TOTAL DUE $160.11

0

JOHN DOE1234 ANYNAME STANYTOWN BC V6B 5A1

LP| | | | | | | | |CA

28 00 000008520 211 000016011 000000000

0 2752

Electronic billing reduces paper consumption. Paperless customer billing app entry screen.


Future actions to reduce emissionsBC Hydro will continue to seek opportunities for energy use reduction in existing buildings, and will continue to

construct new buildings according to energy efficiency targets to reduce carbon emissions. Our efforts to

increase building energy efficiency will include:

○ Replacement of chillers and boilers in our largest buildings with more energy-efficient alternatives, coupled

with optimization of building automation systems;

○ Replacement of existing interior and exterior lighting with energy-efficient lighting, and;

○ Continued investments in replacing buildings.

We are increasingly tracking building use of electricity, natural gas, steam and propane using RealEnergy, a

proprietary energy management system provided by our facilities management service provider, as part of our

goal of reducing energy use.

BC Hydro plans to expand our enterprise electronic billing project by introducing the option of paperless billing to

consolidated billing customers in fiscal year 2019, which should further reduce paper consumption.

Newer vehicle technologies, including hybrid and electric vehicles, will be incorporated into our vehicle fleet. For

2018, we have purchased six new electric vehicles and two hybrid heavy trucks (Bucket trucks with hybrid Jump

systems) as part of our replacement program. We have created an electric vehicle working group to oversee

efficient deployment of our pool of vehicles across the province along with the necessary infrastructure, and we

are actively exploring increased vehicle sharing through development and availability of vehicle pools. We have

also initiated a project to develop a telematics program that will provide operational data related to fuel use and

driver behaviour to further motivate reductions in fuel use and emissions.

BC Hydro recently completed a survey to better understand misconceptions about electric vehicles that are

blocking broader adoption of lower emission vehicles in B.C. The results show a combination of concerns

affecting electric vehicle purchase with vehicle range, charger station availability and vehicle size and equipment

options behind societal views.

BC Hydro encourages broader electric vehicle acceptance by partnering to expand the Direct Current Fast Charger

station network across the province. Starting in 2012, we initiated the Electric Vehicle Smart Infrastructure Project

which resulted in the deployment of 30 stations in southwest B.C. A second phase of the program will deliver an

additional 22 stations located at 20 unique sites by May 2018. We are also partnering with government and other

utilities on the Accelerate Kootenays project which will deliver an additional 13 Direct Current Fast Charger

stations as well as 40 Level 2 charger stations across the Kootenay region of southeast B.C. BC Hydro will be

responsible for six of these Direct Current Fast Charger stations. With advances in fast-charger technology

expected to increase charging speeds by more than six times by 2020, electric vehicle drivers will find it

increasingly convenient to travel longer distances in B.C.DC Fast Charge Station.

Hybrid Heavy Bucket truck.


Adaptation to climate changeBC Hydro infrastructure and operations are resilient to current climate variability and we are increasingly prepared

for severe weather events. We continue to assess potential effects of climate change in our planning, design, and

operations, to better ensure our ability to continue to provide reliable, affordable and clean electricity throughout

B.C. Ongoing collaboration and information exchange with researchers and industry groups helps to advance our

collective understanding of climate change in British Columbia. BC Hydro maintains a Climate Change Adaptation

Working Group to discuss potential risks and responses for climate change adaptation and climate resiliency

across the company. The group will update the BC Hydro Adaptation Plan in 2018.

BC Hydro has partnered with the Pacific Climate Impacts Consortium to update projected future climate and

hydrologic scenarios over the next century. These projections will allow our planners and engineers to anticipate

potential future climate changes during decision-making. This work will continue into 2018. BC Hydro further

maintains its technical knowledge of climate change effects and response alternatives by regularly consulting

climate change websites, webinars, and online tools and attending relevant symposia. We also partner on climate

change adaptation with other public sector organizations and various non-governmental organizations in the

watersheds in which we operate.

BC Hydro has expanded its climate, snow and hydrologic monitoring network in the province, and renewed our

partnership with the Climate-Related Monitoring Program in B.C. We are partnering with the University of

Northern British Columbia on using Light Detection and Ranging remote sensing imagery in the Bridge River

watershed to better understand changes to the glacier and distribution of snow in the basin, and continue our

involvement with the Canadian Columbia Basin Glacier and Snow Research Program.

We have included information about future projections of climate change in recent water licence renewal

applications and also incorporated climate change information in the environmental assessments for the Site C

Clean Energy Project and the Revelstoke Unit 6 project. In addition, we have provided regional presentations to

stakeholders and Indigenous groups on climate change in the Bridge, Columbia and Peace watersheds.

Fraser Valley 2018 New Year’s ice storm.

Airborne laser altimetry of the Conrad Glacier in the Columbia Basin.


Support for energy conservation in the public sectorBC Hydro supports energy management within the public sector through a variety of energy conservation

programs and initiatives that enable carbon emissions reductions in the public sector. In fiscal year 2018, we

helped fund 36 energy managers in public sector organizations and also supported 12 municipalities with a funded

energy manager.

Our public sector support covers schools, hospitals, colleges and universities, municipalities and government, who

are eligible to benefit from a variety of BC Hydro programs designed to help address obstacles to adopting

strategic energy management best practices, or to provide for energy-efficient products and processes.

In fiscal year 2018, BC Hydro invested about $12.5 million in public sector energy efficiency. Examples of projects

we helped fund include:

MUNICIPALITIES

A major lighting upgrade was completed in 2017 at the Richmond Oval in the City of Richmond. The Vancouver

2010 Olympic and Paralympic Winter Games provided an opportunity for BC Hydro to demonstrate its

leadership in clean energy and promote energy efficiency and conservation. The Oval was a key venue that

received our support on the design and implementation of energy efficient technologies, and continues to

practice energy conservation with the upgrade, which saves an estimated 930,000 kWh per year.

HEALTHCARE

The Teck Acute Care Centre at the BC Children’s and BC Women’s Hospital campus was opened. Energy

conservation measures included the use of various water-to-water and air-to-water waste heat recovery

techniques, efficient interior and exterior lighting and controls, improved glazing and improved roof insulation.

The measures are estimated to save about 2.0 GWh of electricity per year.

ADVANCED EDUCATION FACILITIES

Multiple buildings at the University of Northern British Columbia Prince George campus—including a daycare,

library, conference rooms, and the Sports Complex—were retrofitted with new LED lighting and controls resulting

in estimated savings of more than 400,000 kWh per year.

K–12 SCHOOL DISTRICTS

The Vancouver School District completed its Kitsilano Secondary School project through BC Hydro’s Commercial

New Construction program. Construction of the new school will result in estimated energy savings of more than

700,000 kWh per year. The facility implemented greater insulation in the roof, higher efficiency glazing, as well

more efficient lighting and mechanical systems.

State of the art light controls.

Kitsilano Secondary School interior.


Building clean, renewable generationBC Hydro is committed to investing in renewable and clean energy projects that involve upgrading of

large hydroelectric dams and building new infrastructure. Aging infrastructure, a growing population,

and a need for more capacity in our system as demand for electricity increases are the main drivers

behind our investments. Our investments also recognize and take advantage of opportunities to

improve reliability, address safety concerns and mitigate environmental effects.

We recently completed the Ruskin Dam and Powerhouse upgrade, and the John Hart Generating

Station Replacement near Campbell River is scheduled for completion in 2018. These projects will

result in improved seismic safety, environmental benefits and more efficient power generation.

Projects undergoing planning and installation include the Cheakamus Generating Station project

where the generators will be replaced and upgraded by 2020 to provide higher efficiency, reliability

and additional capacity. The project will result in an increase of about 105 GWh per year more than

current generation. BC Hydro is also upgrading and expanding transmission lines, substations and

distribution capabilities to assure improved service and reliability from clean energy power sources.

The Site C Clean Energy Project is scheduled to be in service in 2024, and will provide clean,

renewable and cost-effective energy for more than 100 years. The project will be the third dam and

hydroelectric generating station on the Peace River and will optimize power generation within the

watershed. The facility’s six 183 MW generating units have a total capacity of 1,100 MW and will

produce 5,100 GWh of electricity annually, which will power the equivalent of 450,000 B.C. homes.

The independent power sector is an important partner and supplier to B.C.’s clean energy mix. The

sector provides power through more than 120 electricity purchase agreements across a wide range

of projects such as hydro, biomass, wind and solar. Currently, independent power producers provide

about 25% of B.C.’s electricity and will continue to help meet B.C.’s electricity needs.

In addition to project upgrades, we are also working on mitigating sources of greenhouse gas in our

operating system. Sulphur hexafluoride (SF6) and carbon tetrafluoride (CF4) are potent greenhouse

gases used as insulation in electrical equipment worldwide that unfortunately can be leaked to the

atmosphere. In 2017, BC Hydro developed a new environmental standard to manage these gases.

Over time, BC Hydro intends to minimize the introduction of new equipment using these gases by

pursuing more environmentally friendly alternatives where viable. We have also developed and

piloted a software application that will improve the tracking of gas canisters in the system to better

ensure accurate reporting of possible gas releases. BC Hydro has a target to reduce SF6 and CF4

releases by 25% below 2015 levels by 2020.

Last of the Ruskin Dam Spillways placed into service.

Site C Clean Energy Project powerhouse rendering.


Emissions and offset summary table

BC Hydro greenhouse gas emissions and offsets for 2017

Greenhouse gas emissions created in calendar year 2017

Total emissions (t CO2e) 31,099 t CO2e

Total offsets (t CO2e) 30,359 t CO2e

Adjustments to greenhouse gas emissions reported in prior years

Total emissions (t CO2e) +1 t CO2e

Total offsets (t CO2e) +1 t CO2e

Grand total offsets for the 2017 reporting year

Grand total offsets (t CO2e) 30,360 t CO2e

Retirement of offsets:In accordance with the requirements of the Greenhouse Gas Reduction Targets Act and Carbon Neutral

Government Regulation, BC Hydro (the Organization) is responsible for arranging for the retirement of the offsets

obligation reported above for the 2017 calendar year, together with any adjustments reported for past calendar

years. The Organization hereby agrees that, in exchange for the Ministry of Environment and Climate Change

Strategy ensuring that these offsets are retired on the Organization’s behalf, the Organization will pay within 30

days, the associated invoice to be issued by the Ministry in an amount equal to $25 per tonne of offsets retired on

its behalf plus GST.

Chris O’Riley, President & COO

Executive sign-off:May 31, 2018

BCH18-535

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